NasdaqGM:NERV

Stock Analysis Report

Executive Summary

Minerva Neurosciences, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of a portfolio of product candidates for the treatment of central nervous system diseases.

Snowflake

Fundamentals

Excellent balance sheet and slightly overvalued.

Share Price & News

How has Minerva Neurosciences's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-6.1%

NERV

0.8%

US Biotechs

1.0%

US Market


1 Year Return

-55.6%

NERV

-8.3%

US Biotechs

6.7%

US Market

Return vs Industry: NERV underperformed the US Biotechs industry which returned -8.3% over the past year.

Return vs Market: NERV underperformed the US Market which returned 6.7% over the past year.


Share holder returns

NERVIndustryMarket
7 Day-6.1%0.8%1.0%
30 Day-45.0%-3.9%-1.8%
90 Day-31.1%-3.5%-1.8%
1 Year-55.6%-55.6%-7.5%-8.3%9.1%6.7%
3 Year-64.2%-64.2%13.6%9.6%46.1%36.6%
5 Year3.5%3.5%3.3%-1.7%66.9%48.6%

Price Volatility Vs. Market

How volatile is Minerva Neurosciences's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Minerva Neurosciences undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: NERV ($4.4) is trading below our estimate of fair value ($60.53)

Significantly Undervalued: NERV is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: NERV is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: NERV is unprofitable, so we can't compare its PE Ratio to the US market.


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate NERV's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: NERV is overvalued based on its PB Ratio (2.6x) compared to the US Biotechs industry average (2.5x).


Next Steps

Future Growth

How is Minerva Neurosciences expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

45.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: NERV is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NERV is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NERV is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if NERV's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if NERV's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if NERV's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Minerva Neurosciences performed over the past 5 years?

-1.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NERV is unprofitable, and losses have increased over the past 5 years at a rate of -1.8% per year.

Accelerating Growth: Unable to compare NERV's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NERV is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (78.4%).


Return on Equity

High ROE: NERV has a negative Return on Equity (-79.57%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NERV is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NERV is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Minerva Neurosciences's financial position?


Financial Position Analysis

Short Term Liabilities: NERV's short term assets ($70.8M) exceeds its short term liabilities ($7.6M)

Long Term Liabilities: NERV's short term assets (70.8M) exceeds its long term liabilities (45.4M)


Debt to Equity History and Analysis

Debt Level: NERV is debt free.

Reducing Debt: NERV has no debt compared to 5 years ago when its debt to equity ratio was 11.4%.


Balance Sheet

Inventory Level: NERV has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if NERV's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: NERV has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: NERV has less than a year of cash runway if free cash flow continues to reduce at historical rates of -23.8% each year


Next Steps

Dividend

What is Minerva Neurosciences's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate NERV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NERV's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if NERV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NERV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NERV's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Minerva Neurosciences's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

Rémy Luthringer (58yo)

4.9yrs

Tenure

US$3,910,245

Compensation

Dr. Rémy Luthringer serves as a Clinical Advisor to the Medicxi investment team and a Member of the Co-Founding team at Medicxi Ventures (UK) LLP. He has played an active role in several Index Ventures. He ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Rémy's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Rémy's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

4.5yrs

Average Tenure

58yo

Average Age

Experienced Management: NERV's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

1.8yrs

Average Tenure

61yo

Average Age

Experienced Board: NERV's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$19,25001 Jul 19
William Doyle
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares3,500
Max PriceUS$5.50
BuyUS$53,70027 Jun 19
G. van Heek
EntityIndividual
Shares10,000
Max PriceUS$5.37
BuyUS$5,25027 Jun 19
Jeryl Hilleman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$5.25
BuyUS$56,00027 Jun 19
Hans Hasler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$5.60
BuyUS$55,50027 Jun 19
David Kupfer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$5.55
SellUS$1,166,79426 Jun 19
Index Ventures
EntityCompany
Shares194,000
Max PriceUS$6.01
SellUS$488,91121 Jun 19
Index Ventures
EntityCompany
Shares110,818
Max PriceUS$4.44
SellUS$470,73019 Jun 19
Index Ventures
EntityCompany
Shares105,918
Max PriceUS$4.45
SellUS$250,20818 Jun 19
Index Ventures
EntityCompany
Shares56,243
Max PriceUS$4.45
SellUS$352,44217 Jun 19
Index Ventures
EntityCompany
Shares78,179
Max PriceUS$4.51
SellUS$281,34313 Jun 19
Index Ventures
EntityCompany
Shares60,051
Max PriceUS$4.78
SellUS$137,89621 May 19
Index Ventures
EntityCompany
Shares22,918
Max PriceUS$6.08
SellUS$898,16116 May 19
Index Ventures
EntityCompany
Shares134,828
Max PriceUS$7.05
BuyUS$13,00026 Dec 18
William Doyle
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares2,000
Max PriceUS$6.50
SellUS$24,81113 Dec 18
Richard Russell
EntityIndividual
Role
President
President
Shares3,117
Max PriceUS$7.96
BuyUS$47,80012 Dec 18
William Doyle
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares6,000
Max PriceUS$8.00
BuyUS$16,40021 Nov 18
William Doyle
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares2,000
Max PriceUS$8.20

Ownership Breakdown


Management Team

  • Geoff Race (58yo)

    Executive VP

    • Tenure: 5.4yrs
    • Compensation: US$1.53m
  • William Boni (67yo)

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 4.2yrs
  • Fred Ahlholm (53yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 5.3yrs
    • Compensation: US$845.36k
  • Rémy Luthringer (58yo)

    Executive Chairman & CEO

    • Tenure: 4.9yrs
    • Compensation: US$3.91m
  • Rick Russell (55yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$2.22m
  • Joe Reilly (44yo)

    Senior VP & COO

    • Tenure: 5.3yrs
    • Compensation: US$1.49m
  • Devin Smith (51yo)

    Senior VP

    • Tenure: 1.3yrs
    • Compensation: US$2.24m
  • Michael Davidson (69yo)

    Chief Medical Officer

    • Tenure: 2.8yrs
    • Compensation: US$2.84m
  • Jay Saoud (60yo)

    Senior VP and Head of Research & Development

    • Tenure: 0yrs

Board Members

  • Bill Doyle (57yo)

    Lead Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$272.53k
  • Jeri Hilleman (61yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$241.15k
  • Hans Hasler (63yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$153.13k
  • David Kupfer (78yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$149.63k
  • Rémy Luthringer (58yo)

    Executive Chairman & CEO

    • Tenure: 4.9yrs
    • Compensation: US$3.91m
  • Jan van Heek (70yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$156.88k
  • Fouzia Laghrissi-Thode (56yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$153.26k

Company Information

Minerva Neurosciences, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Minerva Neurosciences, Inc.
  • Ticker: NERV
  • Exchange: NasdaqGM
  • Founded: 2007
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$171.712m
  • Shares outstanding: 39.03m
  • Website: https://www.minervaneurosciences.com

Number of Employees


Location

  • Minerva Neurosciences, Inc.
  • 1601 Trapelo Road
  • Suite 286
  • Waltham
  • Massachusetts
  • 2451
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NERVNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJul 2014
4MNDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2014

Biography

Minerva Neurosciences, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of a portfolio of product candidates for the treatment of central nervous system di ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 03:10
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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